Environmental Engines

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Environmental Car Dealership Business Plan

Strategy and Implementation Summary

Environmental Engines Toyota Honda GM holds a competitive edge by specializing in zero emissions vehicles and has franchised with every auto manufacturer that could offer any competition.

Environmental Engines Toyota Honda GM will grow from three executives plus a small group of three sales persons and one mechanic, all of who will bring their professional expertise and contacts to provide a solid foundation of connections for future marketing ventures.

Environmental Engines Toyota Honda GM's media strategy will focus on direct marketing to local groups and clubs, as well as advertising in magazines. Sales prospects will be finalized in person, through mail-order, over the phone, and via the Internet.

As visibility of our vehicles increases, sales among environmentalists and the younger generation will increase by 50% each month thereafter.

5.1 Sales Strategy

The sales strategy of Environmental Engines Toyota Honda GM will optimize selling by focusing on serving the immediate needs of the customer - foster the "energy pioneer" image, individual transportation, reducing dependence on fossil fuels, and minimizing the automobile's impact on the environment. Informed by the customer's immediate needs, our sales team will focus on informing the customer of the benefits to driving our vehicles.

Sales prospects will be finalized in person, through mail-order, over the phone, and via the Internet. Sales people will be compensated with a two percent commission. Sales persons will be trained in Web-based publishing and database management to optimize order processing.

Prices, delivery and conditions of sale are negotiable within the bounds of profitability.

5.1.1 Sales Forecast

Beginning in January of the first year sales will start small (2 Toyota Priuses, 1 RAV4, 1 Honda) among the early-adopters because the general market has not yet been developed.

As visibility of our vehicles increases, sales among environmentalists and the younger generation will increase by 20% each month thereafter. As word spreads, this rate of increase will maintain steady for at least ten years because the younger generation, one of our target markets, will only continue to grow.

This high rate of growth is believable because the industry is in its start-up stage and will not reach saturation at any foreseeable point in the future. Furthermore, if gasoline prices will continue to rise our non-fossil fuel burning vehicles will only become more attractive. If gasoline prices do not rise, then our sales team will focus on the obvious environmental benefits and future rewards of zero emissions transportation systems.

Sales Forecast
Year 1 Year 2 Year 3
Sales
Toyota Prius $5,937,075 $7,124,490 $8,549,388
Toyota RAV4 $2,770,635 $3,324,762 $3,989,715
Honda $989,513 $1,187,415 $1,424,898
GM $0 $0 $0
Mechanic Labor $395,805 $474,966 $569,959
Total Sales $10,093,028 $12,111,634 $14,533,960
Direct Cost of Sales Year 1 Year 2 Year 3
Toyota Prius $4,749,660 $4,987,143 $5,984,572
Toyota RAV4 $2,216,508 $2,327,334 $2,792,800
Honda $791,610 $831,191 $997,429
GM $0 $0 $0
Mechanic Labor $316,644 $332,476 $398,971
Subtotal Direct Cost of Sales $8,074,422 $8,478,144 $10,173,772

5.2 Milestones

Environmental Engines Toyota Honda GM set 12 realistic milestones for itself within the first year. Achievement of each of these organizational and marketing milestones will build momentum within the organization. The culmination of our first year in the sale of 1,000 vehicles will feedback into our mission statement and reaffirm the purpose and success of Environmental Engines Toyota Honda GM.

Milestones
Milestone Start Date End Date Budget Manager Department
First Thousand Vehicles Sold 1/1/2003 1/1/2004 $0 Jack Anderson Management
First Marketing Campaign 1/1/2003 1/15/2003 $1,000 Jim Handy Marketing
Publishing Website 1/15/2003 2/15/2003 $1,000 Jim Handy Web
Receive First Internet Sale 2/15/2003 3/15/2003 $0 Sales Staff Web
Develop Employee Policies 1/1/2003 1/15/2003 $0 Frank Lee Good Legal
Service First Customer's Vehicle 1/1/2003 1/15/2003 $0 Mechanic Staff Mechanic
Refuel First Customer's Vehicle 1/1/2003 1/15/2003 $0 Jack Anderson Photovoltaics
First Consumer Protection Review 1/1/2003 3/15/2003 $0 Jack Anderson Management
Second Marketing Campaign 2/15/2003 3/15/2003 $1,000 Jim Handy Marketing
Hire Sales and Mechanic 1/1/2003 1/15/2003 $0 Board of Directors Board of Directors
Totals $3,000

5.3 Marketing Strategy

Environmental Engines Toyota Honda GM's media strategy will focus on direct marketing to local conservation groups, outdoors athletic clubs, and environmentally-sensitive political parties, as well as advertising in magazines marketed to automobile enthusiasts, engineers, hobbyists, mechanics and scientists, and through good ratings in consumer protection reports. Impact will grow from three executives (Jack Anderson, Jim Handy, and Frank Lee Good) plus a small group of three sales persons and one mechanic, all of who will bring their professional expertise and avocational contacts to Environmental Engines Toyota Honda GM and provide a solid foundation of connections for future marketing ventures.

5.4 Competitive Edge

Environmental Engines Toyota Honda GM holds a competitive edge by specializing in zero emissions vehicles and has franchised with every auto manufacturer that could offer any competition. Environmental Engines Toyota Honda GM will stand out as the preferable alternative to fossil fuel burning transportation systems. As visibility of our vehicles increases, sales among environmentalists and the younger generation will increase by 50% each month thereafter. As word spreads, this rate of increase will maintain steady for at least ten years amongst our target market in the younger generation who will continue to grow and develop over time.

Furthermore, our vehicles will readily attract new investment because we introduce the concept of sustainability to individual transportation systems by bringing fuel efficiency, economy of size, and environmentally friendlier alternatives to the market.

As the central distribution point of environmentally friendlier engines, Environmental Engines Toyota Honda GM will bring unparalleled know-how and will also aim to serve as a clearing house for product innovations and design patents.